IBD Stock Of The Day Fastenal Nears Handle Buy Point After Sales Turnaround

			Fastenal			

				Fastenal				

			FAST			

$ 47.11

			$0.67
			
			
			
			1.44%
			
			
			
			60%

IBD Stock Analysis

										*   Cup-with-handle base has 48.45 entry. Stock rebounding from 21-day line.

IBD Composite Rating

86/99

Industry Group Ranking

87/197

Emerging Pattern

				Cup with Handle

Cup with Handle

				A positive chart pattern named such because it resembles the outline of a coffee cup with a handle. The pattern can last from seven weeks to as long as a year, but most are three to six months.				

• Not real-time data. All data shown was captured at 2:51PM EST on 03/05/2026.

On Thursday, hardware wholesale vendor Fastenal (FAST) flirted with a buy point after the company reported its strongest average daily sales growth since late 2022. Shares rose as much as 4% before paring gains.

Its strong chart position makes Fastenal IBD’s Stock Of The Day for Thursday.

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Based in Winona, Minn., Fastenal operates over 3,600 stores across the world. It specializes in supplying construction and manufacturing supplies like screws, bolts and other fasteners. In addition to its stores, Fastenal also offers its vast inventory directly to its customers through on-site locations, vending machines and bin stocking.

Fastenal Stock

The stock is technically short of a buy point of 48.45 from its cup-with-handle base, according to MarketSurge. That said, Fastenal stock is buyable after rebounding from the 21-day exponential moving average on Thursday’s strong trade.

The Relative Strength line is moving toward a recent high from February, a bullish sign.

Best IBD 50 Stocks To Watch

So far this year, Fastenal is up over 11%. It had a 4.7% surge in late January, following an earnings call that came in right in line with Wall Street expectations. Reactions were mixed though. Analysts reiterated both buy and hold ratings.

In early February, shares rallied on the release of Fastenal’s January sales figures. The stock advanced at least 3% for three consecutive sessions from Feb. 2 to Feb. 4, at which point it reached its current handle buy point of 48.45.

Fastenal’s Turnaround

After relatively muted sales growth in 2024, with revenue increasing only 2.7%, Fastenal spent much of last year attempting to turn itself around. The company focused on doing more business with its biggest existing customers and signing up new ones.

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Analysts from Argus Research, who rate the stock a buy, supported the focus on large customers and e-commerce.

“Fastenal’s recent efforts to digitize its sales and inventory processes should attract current customers with contracts that have unplanned needs (repair work), as well as smaller companies that don’t have contracts but find it easier to work with Fastenal by ordering online,” analysts wrote in a research note published in January.

On its latest earnings call in January, Fastenal reported 11% sales growth in the quarter and 8.7% for the year. Fastenal’s turnaround last year came against the backdrop of a middling industrial economy that was still reeling from elevated interest rates and tariffs.

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“We continue to gain market share despite a sluggish industrial economy,” president and chief sales officer Jeff Watts said on an investor call. “This marks our second consecutive quarter of double-digit growth, but our success is not just about favorable comparisons, it’s driven by continued progress on our strategic objectives, and they start with increasing our sales effectiveness.”

Watts is scheduled to succeed current CEO Dan Florness on July 16.

Bigger Customers, Over Smaller Ones

The focus on bigger customers did come at the expense of smaller, less profitable ones. In the fourth quarter, active job sites that place orders exceeding $50,000 rose 14% year over year, while those ordering at least $10,000 worth of goods rose 8%. Over the same period, Fastenal saw a “not unexpected” decline in the number of job sites that order under $5,000, Watts said.

Ninety-four percent of those declines came from job sites that order less than $500 a month of Fastenal products, and almost 55% came from customers that order less than $100, Watts added.

“Our strategy deliberately emphasizes key account growth and driving deeper engagement at large accounts for significant spend potential, rather than chasing low-volume transactional business,” he said. “This strategy is paying off in higher growth, more resilient performance against the weak backdrop, and really more efficient focus on our sales talent.”

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